Living in JB

[LeMans2011]

Based on my analysis JB property prices will begin to head north ONLy and ONly when locals have the buying power.
Never otherwise... Not in the long run.
This is for the simple reason that i have repeated ever so often "Strong fundamentals are critical for the success of an economy"
JB has a very kampung economy interspersed with winds of liberalisation and nothing else.
So no matter what Najib or anyone else does.... unless they cause a fundamental shift in economy giving locals the buying power the economy wont change much, salary levels wont increase and therefore housing prices will head south or face stagnation.
Sounds dis heartening but well these are the facts that we gotta wake up to.
There is no point in investors buying up property in JB when there is nothing much they can do with it.
Like Wuqi mentioned several times "If its for own stay its great. Any capital appreciation is a bonus"

Hey AP... may i offer my views.

In Singapore you have Orchard, River Valley... and you have Macpherson, Sengkang, Geylang, etc. In other words it depends on location and the type of dwellings. In the present superhot market in Singapore, even prices at Pasir Ris, Sengkang, etc also shoot up. In a normal market these places are shunned.

There are countless examples of places where property prices have gone up in JB. HH - semi-D which cost 800k now costs close to a million. EL - phase 1 semi-D sold at 950k+ whereas phase 2 at 1.2m and all sold out. Even Nusa Idamn, corner terrace was 300k plus 2 years back but now costs about 500k.
Or look at Setia Tropika you would be very familiar how prices have gone up.

Now, when it comes to resale market it is a bit more tricky. We do have to bear in mind the market will be flooded with newly TOP properties over the next few years. Hence it depends whether demand can cope with supply or vice-versa. There is also the trend in JB that people are moving from their parents' homes at old places like Taman Selesa Jaya, Taman Tun Aminah, the old Bukit Indah areas, etc... to all these new and gated communities. One of the reason people like to buy new houses from developer is it is so easy. They just care about the first 10% downpayment and thereafter its all the monthly instalments. Hence the Eminent fellow Singaporean's case... it is indeed not easy to find someone willing to buy an old house when there are so many new launches out there.

Hence for me the question is always, which market are you looking at? For investment go for investors' favorite properties like EL and HH. The next question is - is the present entry price too high? That will be something each has to make his own judgement

 

[Grago]

Wuqi like your quote goes ".... No good deed goes unpunished...." It's a no win situation with the detractors..... "You do you die.... you don't do you die also!!!!!....." It really sucks when you try to tell/inform others of something good that you've gotten into ONLY to get it thrown into your face. Later when others who've gotten onto the band wagon reap the rewards. YOU get the bullet for not being more FORCEFUL enough to persuade "them (doubters)" that it was a good thing you were trying to tell them!!!!! No worries buddy, you efforts are being recognised. You are very much appreciated by the people in the know here.

 

[Grago]

Hey Lemans2011

These Bayou Village and Creek developement are actually swamp land that have been built-up. Unlike in Singland where reclaimed land is allowed to "settle" for sometime before it has building's/homes put up, the risk premium in "Bayou"/riperian developments would be quite high, IMO. Has the land been allowed to "settled" before construction started. What time period was allowed before this? In most riperian properties in the western countries, they are facing problems of flooding and land/houses being washed away when a big flood comes along. These are factors that should be considered besides strata titles which would be of not much use if the land one owns is swept away in a flood together with the house. Sorry playing Devil's advocate. Just think all factors have to considered before investing in property that's close or near to water!

 

[Investor]

Does it mean that our property will also suffer the same fate too?


PS:Just for pure discussion. Not implying anything.

Wow Cathy, you and i posted the same issue at almost the same time.

Similar mindset huh?

Actually i was quite disappointed when the lady i met at Eminent shared her experience with me.

In fact her home is quite close to Jusco/Giant/Tesco. So what makes her property less valuable? I dun get it.

Firstly ,the current demand in Nusajaya is for high-end gated community, especially East Ledang and Horizon-hills.

Secondly, it's all about 'location'. EL and HH are located inside Nusajaya City and right next to the Financial/Business district Medini and Kota Iskandar, thus it will not suffer the same fate as properties in outer perimeter of Nusajaya.

Thirdly, future properties in Puteri Harbour and Medini will be priced much higher than current prices of EL and HH, thus pushing up the prices of EL and HH. Eg. A waterfront bungalow in Puteri Harbour will be anything above RM6.5 million.

 

[Skippy]

Firstly ,the current demand in Nusajaya is for high-end gated community, especially East Ledang and Horizon-hills.

Secondly, it's all about 'location'. EL and HH are located inside Nusajaya City and right next to the Financial/Business district Medini and Kota Iskandar, thus it will not suffer the same fate as properties in outer perimeter of Nusajaya.

Thirdly, future properties in Puteri Harbour and Medini will be priced much higher than current prices of EL and HH, thus pushing up the prices of EL and HH. Eg. A waterfront bungalow in Puteri Harbour will be anything above RM6.5 million.

Hi Folks,

i've to agree that the prices will shoot upwards with the upcoming openings. I'm sure once the schools and business district come into live... the property maket will also be up and going... by then it's really a bright bright world for those who have broad eyesight (hao ye guang) like you folks... dare to venture and dream for a home outside of sg. I'm happy to be part of this though my place would be a humble terrace.
Btw, i've gone to JPJ to check out the conversion. I got confused as i went to check out at the counter on 2nd level. They told me that S'porean need not convert but for m'sian to drive sg car require so. I did recall there was a discussion on this and mentioned to pay a minimal fee to get this done... signz... can some one pls explain to me about this... i'm confused like sotong *blur blur*
Thanks again folks for your kindness and sharing...
Cheers

 

[tekster]

Yeah i am keen to stay at Setia Tropika. My wife however feels that the kids wont be able to handle the stress of the journey in the morning to school and back.

In addition tuitions is another issue. Its challenging to find Spore quality tutors in Malaysia (though not impossible)

And therefore looks like my home will remain a holiday home for a very long time to come.

my jb friend tells me that the tuition centre near ceder point is quite good. many people send their kids there. it's nearby holiday plaza.

 

[tekster]

Thanks Wuqi

Our petrol tank was closing in on the 3/4 mark.

My wife suggested for the 1st time in years if we could JB just to top up Petrol. So we ended up doing just that. Took us an hour though.

Would have been more worth it if we had makan around there as well right? but then we will end up spending more..

go a few more times and the overspending will stop when the fascination dies down.

 

[Analytical Professor]

True...

10 years back 270k was a decent sum of money.

Was not a low end property.

Location wise was reasonably well located.

Property prices in general head northward not southward.

When property prices head southward there is a serious problem

this serious problem surely comes from an economy that is not stable, not strong.

Talking about investors.... how many investors have Rm 6.5 million with them? If they have so much money what are they doing in JB ?? They might as well invest it in Spore and get better returns and faster. Or they may even go to KL where returns are faster. Why JB??

Investors are smart.. They wont just invest and wait forever.

The rich investors expect a return of not less than 8% as a bare minimum

Firstly ,the current demand in Nusajaya is for high-end gated community, especially East Ledang and Horizon-hills.

Secondly, it's all about 'location'. EL and HH are located inside Nusajaya City and right next to the Financial/Business district Medini and Kota Iskandar, thus it will not suffer the same fate as properties in outer perimeter of Nusajaya.

Thirdly, future properties in Puteri Harbour and Medini will be priced much higher than current prices of EL and HH, thus pushing up the prices of EL and HH. Eg. A waterfront bungalow in Puteri Harbour will be anything above RM6.5 million.

 

[Analytical Professor]

I think the fascination will die down only if i live there all the while. Not otherwise. i spend all school holidays in JB. I also spend all public holidays and weekends in JB. So that is a helluva lot trips.

FYI i have been going JB since 1999 and the fascination has not died down. I have been going JB when you could hardly find many singaporean cars around....

So another 100 trips surely wont make a difference.

go a few more times and the overspending will stop when the fascination dies down.

 

[Investor]

True...

Talking about investors.... how many investors have Rm 6.5 million with them? If they have so much money what are they doing in JB ?? They might as well invest it in Spore and get better returns and faster. Or they may even go to KL where returns are faster. Why JB??

You need to pay 10 times the price (RM65.0 million) to get a bungalow in Sentosa cove. For someone who can afford one in Sentosa and has his own yacht, he can easily buy one bungalow in Puteri Harbour and visit it during weekend in his yacht.
Puteri Harbour's residences can be weekend homes for the ultra-rich in Singapore.
EL and HH can be weekend homes for many other well-off Singaporeans.

 

[Analytical Professor]

The ultra rich in Spore wont just throw their money away if they do not see the possibility of returns. As an investor you would know that. Would you put your money in RM 6.5 million and allow it to depreciate, stagnate or earn a low return??

The ultra rich will have several homes in classy areas as countries.

IS JB Monaca? Telling someone you have your yatch moored in Sentosa Cove, or in the waters of France is one thing and telling them that i have my yatch berthed at Puteri HArbour is totally different.

Bro you talking off ultra Rich you know? Not normal people like you and me. I wont tell you how, but i know some of these people (wish they gave me their money or a part of it atleast). Do you know these people wont even step into JB?

They say as an investor there is a helluva lot of money to be made in Spore. There is no need to invest in JB. Some of them also say those who cant invest in Spore or dun have enough to invest here in Spore go to JB to invest. <<In other words cant invest in Spore then go JB>>

<<JUSt for discussion only. Just stating what i have seen and heard>>

Let me tell you many of the well heeled prefer landed properties in Spore unless there are specific reasons that make them move to JB <<now that is a different story>>.

Look at the couple featured in ST yday. They said they moved to JB so that they could afford their sons education. And this is for people who are staying at EL you know. Not HH,LEisure Farm or Setia Tropika etc.

You need to pay 10 times the price (RM65.0 million) to get a bungalow in Sentosa cove. For someone who can afford one in Sentosa and has his own yacht, he can easily buy one bungalow in Puteri Harbour and visit it during weekend in his yacht.
Puteri Harbour's residences can be weekend homes for the ultra-rich in Singapore.
EL and HH can be weekend homes for many other well-off Singaporeans.

 

[Analytical Professor]

Please feel free to share your views.

Everyone is entitled to their views and opinions.

Lets have a healthy discussion.

Knowledge to all and offence to none

Hey AP... may i offer my views.

 

[Analytical Professor]

We are all here to share our views, opinions and learn from the learned ones.

For my part i love to raise issues which i think need clarity (atleast for myself, i cant speak for others) and understand well.

Having studied a few real estate markets i think i have some knowledge. YEt again i must admit that each market is unique and has its own set of factors that influence it.

So lets all learn together.

Obviously with facts would be better. But JB market very hard to find real data and analysis.

 

[cathylmg]

Please feel free to share your views.

Everyone is entitled to their views and opinions.

Lets have a healthy discussion.

Knowledge to all and offence to none

I'd think that property in JB will not grow exponentially like those in Singapore. JB property is on a long-term uptrend now, but things are moving at a much slower pace then we would like or imagine(sorry no offence!) it to be. It will pick up pace after the opening of Legoland and various university. So location is the key. However, after it pick up pace, it will neverthelessly settle down to a gradual yearly increase pace again after a while. Bearing in mind that Iskandar is 3 times larger then Singapore, the land surrounding it seems like infinite.

Like Wuqi said, for personal stay is ok. But I will advise investors to invest for rental instead of flipping. What Robert Kiyosaki have said I tend to agree with him for property investments, that is to invest with a mindset of passing it to your next generations. Like this, even if you altermately sell it at a lost, the rental collected over the years would have more or less buffered it. And will give you a handsome return on your investment too.

Its just my humble opinion. You are entitled to yours!

 

[house]

The ultra rich in Spore wont just throw their money away if they do not see the possibility of returns. As an investor you would know that. Would you put your money in RM 6.5 million and allow it to depreciate, stagnate or earn a low return??

The ultra rich will have several homes in classy areas as countries.

IS JB Monaca? Telling someone you have your yatch moored in Sentosa Cove, or in the waters of France is one thing and telling them that i have my yatch berthed at Puteri HArbour is totally different.

Bro you talking off ultra Rich you know? Not normal people like you and me. I wont tell you how, but i know some of these people (wish they gave me their money or a part of it atleast). Do you know these people wont even step into JB?

They say as an investor there is a helluva lot of money to be made in Spore. There is no need to invest in JB. Some of them also say those who cant invest in Spore or dun have enough to invest here in Spore go to JB to invest. <<In other words cant invest in Spore then go JB>>

<<JUSt for discussion only. Just stating what i have seen and heard>>

Let me tell you many of the well heeled prefer landed properties in Spore unless there are specific reasons that make them move to JB <<now that is a different story>>.

Look at the couple featured in ST yday. They said they moved to JB so that they could afford their sons education. And this is for people who are staying at EL you know. Not HH,LEisure Farm or Setia Tropika etc.

boss... u all are already very rich ppl as u guys talking about million.... which most of the local can't earn for their whole life.....

 

[cathylmg]

No lah! Last time uncle and aunties air their views in the kopitiam, now we go to the forum for discussion. No need to order kopi. keke!

 

[Analytical Professor]

I am talking only bro..

Ofcourse i agree with you that there are some really really rich guys on this thread.

However I am just a normal guy who enjoys JB for its cheaper reflexology and cost of living amongst other aspects.

boss... u all are already very rich ppl as u guys talking about million.... which most of the local can't earn for their whole life.....

 

[Analytical Professor]

Kudos.... rightly said...

No need to order kopi. Save kopi money. Even kopi too expensive these days in Spore.

No noise pollution and no bad smell on clothes after visiting kopitiam.

No lah! Last time uncle and aunties air their views in the kopitiam, now we go to the forum for discussion. No need to order kopi. keke!

 

[Investor]

The ultra rich in Spore wont just throw their money away if they do not see the possibility of returns. As an investor you would know that. Would you put your money in RM 6.5 million and allow it to depreciate, stagnate or earn a low return??

Yes they won't if they don't see a potential return, but that doesn't mean that Nusajaya has no potential return. Everyone has their own judgement on any investment and nobody is always right, not even Warren Buffet. You might view Nusajaya as having low potential but I see it in a totally different perspective. We can't say who's right or wrong, it's just a matter of different judgement.

ultra rich will have several homes in classy areas as countries.
IS JB Monaca? Telling someone you have your yatch moored in Sentosa Cove, or in the waters of France is one thing and telling them that i have my yatch berthed at Puteri HArbour is totally different.

Nusajaya is definitely no Monaco. My view on investing in Singapore vs Nusajaya is like investing in blue chip vs penny stock. In penny stocks, yes there's high risk but we risk for the potential high return if things in Nusajaya materialized.

you talking off ultra Rich you know? Not normal people like you and me. I wont tell you how, but i know some of these people (wish they gave me their money or a part of it atleast). Do you know these people wont even step into JB?

Yes I know what I'm talking about. Yes, many poor people also won't step into JB, not just the ultra-rich. But not all the ultra-rich won't step into JB. Many drive to Malaysia in a convoy of Ferrari and Lamborghini.

say as an investor there is a helluva lot of money to be made in Spore. There is no need to invest in JB. Some of them also say those who cant invest in Spore or dun have enough to invest here in Spore go to JB to invest. <<In other words cant invest in Spore then go JB>>

<<JUSt for discussion only. Just stating what i have seen and heard>>

I would say that they are not the voice of every single ultra rich people.

Let me tell you many of the well heeled prefer landed properties in Spore unless there are specific reasons that make them move to JB <<now that is a different story>>.

Look at the couple featured in ST yday. They said they moved to JB so that they could afford their sons education. And this is for people who are staying at EL you know. Not HH,LEisure Farm or Setia Tropika etc.

Investing in a few 'extra' properties in Nusajaya is a whole different story from moving to Nusajaya.

 

[Analytical Professor]

1) Agreed property in JB can never grow exponentially like Spore. Atleast not in the near-medium term. Long term its anybodys guess.

2) Things are moving at a much slower pace than we would like to believe.

3) I would treat even the Legoland and various foreign universities as Growth Catalysts to spur other developments. On their own they wont have the momentum to sustain the growth of JB.

4) With a land 3x the size of Spore one can hardly imagine any real gains in capital appreciation in the near to medium term. For the simple reason land is still plentiful. Spore has taken 50 years to get to where it is today. Do you think Iskandar can attain the same standards in 50-70 years given its 3x land size for Iskandar?

5) What is the govt doing the raise the skills of its own people? Remember the Barisan Govt is patriotic. It prefers its own people to foreigners.

6) If locals dun have the skill sets to secure higher wages, how will the economy grow? Foreigners cant sustain the economy.

7) Just buying a house is not reason enough for an economy to grow. You need to live there and spend there and spend well. Then there will be an all round inclusive growth in the economy.

8) Where are the MNCs? How many local big boys have operations with 1000s of staff in JB?

9) These are real questions that need answers. Without answering these questions its hard to imagine Iskandar being a sought after well developed city.

I would like Iskandar to grow and prove me wrong.

Ofcourse vested interests

I'd think that property in JB will not grow exponentially like those in Singapore. JB property is on a long-term uptrend now, but things are moving at a much slower pace then we would like or imagine(sorry no offence!) it to be. It will pick up pace after the opening of Legoland and various university. So location is the key. However, after it pick up pace, it will neverthelessly settle down to a gradual yearly increase pace again after a while. Bearing in mind that Iskandar is 3 times larger then Singapore, the land surrounding it seems like infinite.

Like Wuqi said, for personal stay is ok. But I will advise investors to invest for rental instead of flipping. What Robert Kiyosaki have said I tend to agree with him for property investments, that is to invest with a mindset of passing it to your next generations. Like this, even if you altermately sell it at a lost, the rental collected over the years would have more or less buffered it. And will give you a handsome return on your investment too.

Its just my humble opinion. You are entitled to yours!